LIC term insurance plan

best LIC term insurance plan

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LIC also provides term insurance plans other than an endorsement, money back, and child plan. These term insurance schemes can be purchased through LIC branches or through online mode. Persons who have technical views or want early policies can procure their policies from the company’s website. The terms and conditions of these schemes are simple and can be obtained with minimal paperwork. LIC term insurance plan provides tax benefits on payment of premium and the sum insured is payable to the nominee. Loans cannot be availed against these term schemes.

Advantages of choosing LIC term insurance plan:

  • The credibility of the company: LIC term insurance plan has been meeting the insurance needs of the entire country for a long time as the oldest and the largest participant within the insurance sector. The objective was to spread life insurance to a wider and more specifically rural area, to reach out to all insurable persons in the country, and to provide them with adequate financial cover. Today the name of LIC is noted not only in India but throughout the world.
  • Claim Settlement Ratio: The current claim settlement ratio of LIC India is 97.79% (as per the latest report of IRDA) indicating the number of claims accepted and settled by the nominee or the claimant along with the payment of the amount of insurance requested by the claimant. This is the biggest reason that LIC is ranked top as one of the best LIC life insurance companies in India.
  • Customer satisfaction rate: the company keeps a record of selling 20 lakh policy at its first date of commencement of the policy. That shows how well customers believe in their leech and how satisfied they are with their services.
  • Taxability ratio: with the following rules and guidelines passed by the IRDA, life insurance companies have to maintain the minimum solvency ratio 1.5. Life insurance corporation of India has a ratio of 1.58. The taxability ratio shows the ability of a company to pay its liabilities.
  • Income tax benefit: Income tax benefit can be obtained under each term plan of LIC up to a maximum of Rs.125000. The insured can earn these benefits at the premium paid for the policy.
  • Variation and flexibility: LIC is currently providing a facility through three-term insurance schemes. Whicprovidesde the variation and flexibility to choose the policy term and mode of payment of premium.
  • Easy payment process: LIC also has offline facilities like ECS and ATMs so that the insured can easily deposit premiums in time. If the insured is comfortable with the online premium payment system, they can deposit premium through the LIC website, authorized Banks (axis or corporation bank) or mobile application, etc.
  • High security at cheap rates: Very low premium is fixed for LIC’s term insurance plans. At this low cost, you will get a huge sum insured.
  • Earned awards and achievements: LIC has earned a number of national and international awards in recent years, demonstrating its excellence in the insurance sector. Some of the awards offered by the company are “world greatest brands 2015 Asia and GCC,” the most trusted brand of India, the brand icon award, etc.
  • Online claim settlement process: Life insurance corporations had launched online facilities to ensure faster claims settlement service in digital media, including development under term insurance.
  • Low premium for non-smokers: LIC term plans offer a premium to people who are health conscious and ill off habits. Just like the rate of premium for non-smokers is very low unlike those who smoke.

Disadvantages of LIC term insurance plan:

    • The cost of life insurance is paid by you but this benefit may be given to the nominee after your death.
    • Low return
    • LIC is providing expensive premiums to other private companies.

1. LIC take term

Features:

The policy offers 2 types of options to obtain the sum assured that the insured can choose from while purchasing the policy:

  • No medical examination is required.
  • As per policy, the insured is not eligible to receive any type of surrender value.
  • This is the only security scheme under which no loan is granted.
  • A regular, single, and limited premium payment for a policy is flexible.
  • Low premium rates have been raised for non-smokers and women.
  • The sum insured can be raised with the help of an accident benefit rider by paying some extra premium.

Details:

Entry age: 18-65 years
Maturity age: Max 80 years
Premium: Minimum – depends on the factors decided by the insurer Maximum – no limits
Premium payment term:
    Limited payment: Single payment of premium for 5 years
     Single payment: Lump-sum premium
Sum assured: 50 Lacs – No limit
Policy term: 10 – 40 Lacs

2. LIC Jeevan Amar Plan

Features:

The sum insured in the plan can be chosen out of 2 options: level sum insured and increased sum insured.

  • Like other plans, this scheme is available for women and non-smoker at low premiums.
  • You can choose from regular payments and limited ones.
  • The cover of the original policy can be raised by paying some additional premium for accident benefit rider.
  • No maturity benefit is given under the policy.
  • An extra rebate is given for a high sum insured.

Details:

Entry age: 18 – 65 years
Maturity age: Max 80 years
Premium  
Minimum: Life assured depends on the policy period and age.
Maximum: No limit
Premium payment term: Regular payments, limited payment policy
Period minimum: 10 – 40 years
Premium payment mode: Annual or half-yearly
Fixed amount:-
   Minimum: Rs. 2500000
   Maximum: No limit

Death: The benefit of the full sum insured shall be paid to the nominee.

3. LIC Anmol Jeevan-II

Features:

Sum insured on death: The sum insured is paid to the nominee by the insured on his death equal to the sum chosen at the beginning of the policy. Once the sum insured is paid, the policy will be terminated and no benefit will be payable thereafter.

Maturity benefit: This policy does not provide any maturity benefit to the beneficiary at the end of the term. Paid-up value: The policy does not provide paid-up value.

Nomination: The insurer may change the name of the nominee in his/her policy anytime during the policy period.

Details:

Entry age: 18 – 55 years
Maturity age: Max 65 years
Premium:-  
   Minimum: Life assured depends on the policy period and age.
    Maximum: No limit
Premium payment term: Equal to the policy term
Period minimum: 5 – 25 years
Premium payment mode: Annual or half-yearly
Sum assured: 6 – 24 Lacs

Death: The benefit of the full sum insured shall be given to the nominee.

Also, Read- Health Insurance Claim Settlement Ratio 2019-20 keyfeture

Lic term insurance plan riders:

 1. LIC new critical illness beneficial plan rider

LIC critical care benefit rider is a non linked rider that will provide financial assistance when life insurance is suffering from serious illnesses.

The rider shall be attached only at the beginning of the original policy with non-linked schemes and shall provide an add-on benefit as an additional sum of insurance. This effective rider will provide coverage against 15 serious diseases, including cancer-specific severity, open chest CABG, kidney failure requiring regular dialysis, stroke, permanent paralysis of organs, blindness, third-degree irritation, Alzheimer, etc.

Details:

Entry age: 18 – 65 years
Maturity age: 75 years
Premium payment mode: Limited payment, regular payment
Sum assured:         1 – 25 Lacs
Frequency of premium payment: Same as a base plan
Premium payment term  
  Regular premium: From 5 years to 35 years on the basis of the policy term
  Policy period: 5 years (policy year – 1 year)
Policy term  
  Regular premium: From 5 years to 35 years on the basis of the policy term
  Policy period: 10 years to 35 years

2. LIC new term insurance rider

The new term assurance rider cover provides additional cover in case of the unfortunate death of the insured during the cover period. It can be linked to one parent policy to provide additional benefits at a very low cost. In case of the death of the insured, the named person will surely receive the sum of life cover and rider. You can only invest this rider at the starting of the policy.

Death benefit: In case of the demise of the insured during the policy period, the beneficiary will receive an amount equal to the sum insured, which may be equal to the sum insured of the maximum basis policy.

Maturity benefit: There is no maturity benefit.

Details:

Entry age: 18 – 60 years
Maturity age: Max 75 years
Frequency of premium payment: Same as a base plan
Sum assured: 1 – 25 Lacs
Premium payment term: Same as a base plan
Policy term: Same as a base plan

3. Best LIC term insurance plan: LIC term insurance plan for 1 crore

Details:

Coverage: Up to 10 crore
Term plan: Rs.10 per day

LIC term insurance plan claim process:

Some documents need to be filled up in LIC to claim, and proof submission is necessary. For a claim on death of the insurance holder, the claimant of the sum insured has to submit the following documents:

  • LIC term insurance policy document.
  • A certificate of death clearly shows the cause of death.

Once you have collected all your documents, you will need to submit them to the nearest LIC office, after which the company will start working and verify all the details. When it comes to choosing the right term insurance plan, it is always advisable to compare all of the options available first and choose the best one accordingly.

LIC term insurance renew

LIC is functioning as the most successful life insurance company in India due to its skilled customer services and customer satisfaction. Uncertain events like LIC term plan death are designed to meet the growing need for family financial security. The purpose of the LIC term insurance plan is to ensure a higher sum assured at a low cost. The insured does not feel anxious about timely payment of coverage as LIC has 97.79% of the claim settlement amounts. Most of the claims registered with LIC of India are dealt with by the claimant submitting the correct information.

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